REG - Arrow Exploration - Arrow Announces Exploration Well AB-1 Results

Arrow ExplorationAnnouncement

06/01/2025 07:00

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RNS Number : 1526S  Arrow Exploration Corp.  06 January 2025

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ARROW ANNOUNCES EXPLORATION WELL AB-1 RESULTS

AB-1 now on production, AB-2 at target depth

CALGARY, January 6, 2025 - Arrow Exploration Corp. (AIM: AXL; TSXV: AXL)
("Arrow" or the "Company"), the high-growth operator with a portfolio of
assets across key Colombian hydrocarbon basins, is pleased to provide an
update on the operational activity at the Alberta Llanos field on the Tapir
Block in the Llanos Basin of Colombia where Arrow holds a 50 percent
beneficial interest.

AB-1

The AB-1 well was spud on November 30 2024, and reached target depth on
December 13, 2024. AB-1 was the first well drilled into the Alberta Llanos
field and results from this well have confirmed the productive potential of
the multi-pool field. The well was drilled to a total measured depth of 9,960
MD feet (8,846 feet true vertical depth) and encountered multiple
hydrocarbon-bearing intervals.

On December 24, Arrow put the AB-1 well on production in the Ubaque formation
which has approximately 62 feet of net oil pay. The pay zone is a clean
sandstone exhibiting an average porosity of 25% with high resistivities. An
electric submersible pump (ESP) was inserted in the well after perforating.

The well was put on production to allow the well to clean-up and conduct
proper water cut evaluation. Currently, the well is operating at a pump
frequency of 33 Hz and a choke aperture of 34/128.

Average initial production for the first seven days was 658 BOPD gross (329
BOPD net) of 13.8° API oil with a 49% water cut (completion fluid and
formation water).  These results are in line with expectations.

Initial production results are not necessarily indicative of long-term
performance or ultimate recovery.

AB-2

The AB-2 well was spud on December 25, 2024 and reached target depth of 10,795
MD feet on January 1, 2025. Logs and potential productive sands are being
evaluated. AB-3 will be drilled immediately upon completion of the AB-2 well.

 

Operations Update

 

Production

Total corporate peak production in December, inclusive of contribution from
AB1, was 5,175 boe/d with an average for the month of 4,899 boe/d, in line
with the Company's expectations.

East Tapir 3D Seismic Program

The East Tapir 3D seismic acquisition program is progressing on schedule with
camps and equipment being mobilized to the field.  The Company expects that
the seismic shoot will begin in March.

 

Cash Balance

On January 1, 2025, the Company's cash balance was US$19.1 million.

 

Marshall Abbott, CEO of Arrow commented:

"Initial production from the AB-1 exploration well is an exciting event for
Arrow. In addition to the thick pay zones encountered in the Ubaque formation,
additional pay zones currently behind pipe, the C7, Gacheta and Guadalupe,
provide further opportunities for production and reserves increases."

"The Alberta Llanos discovery is material to Arrow and we are looking forward
to the results of the AB-2 and AB-3 wells which will help to determine the
size and extent of the pools and the potential reserves additions.  Initial
results indicate that the Alberta Llanos discovery will result in another core
area for Arrow and set up parameters for future horizontal development
drilling."

"We look forward to providing further updates on this low-risk development
drilling program."

"2024 was a fantastic year of growth and infrastructure development for the
business.  I wish to thank the entire the Arrow Team and their families for
the tireless work and dedication to the growth of the Company and creating
shareholder value."

 

 

 

For further Information, contact:

 Arrow Exploration
 Marshall Abbott, CEO                                                +1 403 651 5995
 Joe McFarlane, CFO                                                  +1 403 818 1033

 Canaccord Genuity (Nominated Advisor and Joint Broker)
 Henry Fitzgerald-O'Connor                                           +44 (0)20 7523 8000

 James Asensio

 George Grainger

 Auctus Advisors (Joint Broker)
 Jonathan Wright                                                     +44 (0)7711 627449
 Rupert Holdsworth Hunt

 Camarco (Financial PR)
 Owen Roberts                                                        +44 (0)20 3781 8331
 Rebecca Waterworth

About Arrow Exploration Corp.

Arrow Exploration Corp. (operating in Colombia via a branch of its 100% owned
subsidiary Carrao Energy S.A.) is a publicly traded company with a portfolio
of premier Colombian oil assets that are underexploited, under-explored and
offer high potential growth. The Company's business plan is to expand oil
production from some of Colombia's most active basins, including the Llanos,
Middle Magdalena Valley (MMV) and Putumayo Basin. The asset base is
predominantly operated with high working interests, and the Brent-linked light
oil pricing exposure combines with low royalties to yield attractive potential
operating margins. By way of a private commercial contract with the recognized
interest holder before Ecopetrol S.A., Arrow is entitled to receive 50% of the
production from the Tapir block. The formal assignment to the Company is
subject to Ecopetrol's consent.  Arrow's seasoned team is led by a hands-on
executive team supported by an experienced board. Arrow is listed on the AIM
market of the London Stock Exchange and on TSX Venture Exchange under the
symbol "AXL".

 

Forward-looking Statements

This news release contains certain statements or disclosures relating to Arrow
that are based on the expectations of its management as well as assumptions
made by and information currently available to Arrow which may constitute
forward-looking statements or information ("forward-looking statements") under
applicable securities laws. All such statements and disclosures, other than
those of historical fact, which address activities, events, outcomes, results
or developments that Arrow anticipates or expects may, could or will occur in
the future (in whole or in part) should be considered forward-looking
statements. In some cases, forward-looking statements can be identified by the
use of the words "continue", "expect", "opportunity", "plan", "potential" and
"will" and similar expressions. The forward-looking statements contained in
this news release reflect several material factors and expectations and
assumptions of Arrow, including without limitation, Arrow's evaluation of the
impacts of COVID-19, the potential of Arrow's Colombian and/or Canadian assets
(or any of them individually), the prices of oil and/or natural gas, and
Arrow's business plan to expand oil and gas production and achieve attractive
potential operating margins. Arrow believes the expectations and assumptions
reflected in the forward-looking statements are reasonable at this time, but
no assurance can be given that these factors, expectations, and assumptions
will prove to be correct.

The forward-looking statements included in this news release are not
guarantees of future performance and should not be unduly relied upon. Such
forward-looking statements involve known and unknown risks, uncertainties and
other factors that may cause actual results or events to differ materially
from those anticipated in such forward-looking statements. The forward-looking
statements contained in this news release are made as of the date hereof and
the Company undertakes no obligations to update publicly or revise any
forward-looking statements, whether as a result of new information, future
events or otherwise, unless so required by applicable securities laws.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that
term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.

 

Glossary

API:        A specific gravity scale developed by the American
Petroleum Institute (API (https://glossary.oilfield.slb.com/en/terms/a/api) )
for measuring the relative density of various petroleum liquids, expressed in
degrees.

BOPD:   barrels of oil per day

boe/d:  barrels of oil equivalent per day

MD         Measured Depth

Qualified Person's Statement

The technical information contained in this announcement has been reviewed and
approved by Grant Carnie, senior non-executive director of Arrow Exploration
Corp. Mr. Carnie was formerly a member of the Canadian Society of Petroleum
Geologists, holds a B.Sc. in Geology from the University of Alberta and has
over 35 years' experience in the oil and gas industry.

This Announcement contains inside information for the purposes of the UK
version of the market abuse regulation (EU No. 596/2014) as it forms part of
United Kingdom domestic law by virtue of the European Union (Withdrawal) Act
2018 ("UK MAR").

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